Maoism and central planning China in the World Economy, autumn 2024 Questions from last lecture • • • • Questions from last lecture •Which two rivers are connected by the Grand Canal? • • • • Questions from last lecture •Which two rivers are connected by the Grand Canal? •In terms of north vs. south, which part of China is traditionally more commercial + populous? • • • • Questions from last lecture •Which two rivers are connected by the Grand Canal? •In terms of north vs. south, which part of China is traditionally more commercial + populous? •Why has the capital historically been located in the north? • • • • Questions from last lecture •What was the tributary system and which states were involved in it? Questions from last lecture •What was the tributary system and which states were involved in it? •What was demanded of China in the „unequal treaties“? Questions from last lecture •What was the tributary system and which states were involved in it? •What was demanded of China in the „unequal treaties“? •Who were China‘s last dynasty? When were they overthrown? Questions from last lecture •What was the tributary system and which states were involved in it? •What was demanded of China in the „unequal treaties“? •Who were China‘s last dynasty? When were they overthrown? •What was (and is) the Kuomintang? Who was its first leader? • Today •The intellectual journey of Marxism thought from Karl Marx to Mao Zedong •The structure of the Chinese Communist Party •Central planning as an economic systém • •The CCP‘s rise to power and Maoist rule of China (1949 – 1976) Marxism •An attempt to interpret developments in the West – industrial revolution + political revolutions •Liberals: „Great, we have won!“ •Liberals: „Great, we have won!“ •Socialists: „Is this really all what we wanted?“ Karl Marx •Philosophy of history – teleological development towards more advanced modes of society Karl Marx •Philosophy of history – teleological development towards more advanced modes of society • •A theory of society‘s past and future development, which is both inevitable and desirable •From the standpoint of 1870 or so Karl Marx •Philosophy of history – teleological development towards more advanced modes of society • •A theory of society‘s past and future development, which is both inevitable and desirable •From the standpoint of 1870 or so • •Historical materialism – structure and superstructure Karl Marx •„Theory of two revolutions“ • Karl Marx •„Theory of two revolutions“ (or two-stage revolution) •Feudal system – land as the most important resource > landowners as the ruling class • • Karl Marx •„Theory of two revolutions“ (or two-stage revolution) •Feudal system – land as the most important resource > landowners as the ruling class •Exploitative and inefficient, almost no sustained economic growth • • Karl Marx •Bourgeois entrepreneurs will gradually become richer than the land-owning nobility •Eventually, they will overthrow the monarchy and impose a liberal regime • Karl Marx •Bourgeois entrepreneurs will gradually become richer than the land-owning nobility •Eventually, they will overthrow the monarchy and impose a liberal régime • •= at first a change in the economic structure, than a change in the political superstructure • Karl Marx •Bourgeois entrepreneurs will gradually become richer than the land-owning nobility •Eventually, they will overthrow the monarchy and impose a liberal régime • •= at first a change in the economic structure, than a change in the political superstructure • Karl Marx •= „first revolution“ = transition from feudalism to capitalism • • Karl Marx •Is this good or not? Karl Marx •Is this good or not? •Yes! Karl Marx •Capitalism = improvement – technological progress and accumulation of wealth Karl Marx •Capitalism = improvement – technological progress and accumulation of wealth •Capitalists compete to effectively use labor and new technologies to serve their customers Karl Marx •Capitalism = improvement – technological progress and accumulation of wealth •Capitalists compete to effectively use labor and new technologies to serve their customers •Significantly more efficient than feudalism Karl Marx •Capitalism = improvement – technological progress and accumulation of wealth •Capitalists compete to effectively use labor and new technologies to serve their customers •Significantly more efficient than feudalism •But also even more exploitative – humans have no other value than as workers – objectification, commodification Karl Marx •> accumulation of wealth in the hands of the elite, impoverishment of everyone else Karl Marx •> accumulation of wealth in the hands of the elite, impoverishment of everyone else •Ruthless competition will bankrupt most capitalists Karl Marx •> accumulation of wealth in the hands of the elite, impoverishment of everyone else •Ruthless competition will bankrupt most capitalists •In the end, there will be only a few giant corporations + millions of destitute workers Karl Marx •> accumulation of wealth in the hands of the elite, impoverishment of everyone else •Ruthless competition will bankrupt most capitalists •In the end, there will be only a few giant corporations + millions of destitute workers •= few people will actually support the régime! Karl Marx •> accumulation of wealth in the hands of the elite, impoverishment of everyone else •Ruthless competition will bankrupt most capitalists •In the end, there will be only a few giant corporations + millions of destitute workers •= few people will actually support the régime! •The workers will overthrow the few remaining capitalists and establish communism Karl Marx •= „second revolution“ > transition from capitalism to communism •In the future, not in Marx‘ lifetime! Karl Marx •„Dictatorship of the proletariat“ – the many will overthrow the few •= majority rule! Karl Marx •„Dictatorship of the proletariat“ – the many will overthrow the few •= majority rule! •The revolution will be led by the masses Karl Marx •It is hard to say what exactly will happen Karl Marx •It is hard to say what exactly will happen • •But in general – the vast amount of wealth produced by capitalism will be enough to ensure welfare for everyone •Technology will have reached such a stage that people will only work a few hours a week Karl Marx •Why cannot a society go from pre-modern agricultural state straight to communism? Karl Marx •Why cannot a society go from pre-modern agricultural state straight to communism? •Because there would be no wealth to redistribute! Karl Marx •Capitalism is a necessary stage through which every human society must pass Karl Marx •Capitalism is a necessary stage through which every human society must pass •Therefore, every society must at first have the liberal, bourgeois revolution Karl Marx •Communist revolutions will happen in the richest, most advanced societies on Earth, as the next step of civilization Karl Marx •Communist revolutions will happen in the richest, most advanced societies on Earth, as the next step of civilization •> Germany, Britain, or the United States Lenin and Trotsky •Active politicians who expected to personally lead the revolution Lenin and Trotsky •Active politicians who expected to personally lead the revolution •Russia – Europe‘s economic periphery, still at the feudal stage > „How can we have a communist revolution here?“ Lenin and Trotsky •Poorer countries follow a different path (x Marx) Lenin and Trotsky •Poorer countries follow a different path (x Marx) •> investment comes from foreign capitalists and the state Lenin and Trotsky •Poorer countries follow a different path (x Marx) •> investment comes from foreign capitalists and the state •> there is no bourgeoisie to establish capitalism and liberal democracy! Lenin and Trotsky •Poorer countries follow a different path (x Marx) •> investment comes from foreign capitalists and the state •> there is no bourgeoisie to establish capitalism and liberal democracy! • •> the first revolution will not happen on its own -> no natural path towards Communism Lenin and Trotsky •Exchange with rich countries will only enrich the traditional, conservative elite Lenin and Trotsky •Exchange with rich countries will only enrich the traditional, conservative elite •For example, aristocratic landowners in Russia will export food to rich countries > they will make money and hold power indefinitely Lenin and Trotsky •Exchange with rich countries will only enrich the traditional, conservative elite •For example, aristocratic landowners in Russia will export food to rich countries > they will make money and hold power indefinitely •Similar situation – European colonies, Latin America •= globalization tends to freeze the social hierarchy in poor countries and lock them into being producers of natural resources Lenin and Trotsky •Exchange with rich countries will only enrich the traditional, conservative elite •For example, aristocratic landowners in Russia will export food to rich countries > they will make money and hold power indefinitely •Similar situation – European colonies, Latin America •= globalization tends to freeze the social hierarchy in poor countries and lock them into being producers of natural resources • •> Immanuel Wallerstein, World System Theory • Lenin and Trotsky •> poor countries don‘t follow the same path as the West Lenin and Trotsky •> poor countries don‘t follow the same path as the West •They are not going to transition to Western-style capitalism • Lenin and Trotsky •> poor countries don‘t follow the same path as the West •They are not going to transition to Western-style capitalism •> they will not have a bottom-up socialist revolution either Lenin and Trotsky •> poor countries don‘t follow the same path as the West •They are not going to transition to Western-style capitalism •> they will not have a bottom-up socialist revolution either • •> the capitalist (and liberal democratic) stage must be bypassed Lenin and Trotsky •Russia (and China!) – urban workers in the few existing modern industries are a minority • Lenin and Trotsky •Russia (and China!) – urban workers in the few existing modern industries are a minority •Who made up the bulk of the population? Lenin and Trotsky •Russia (and China!) – urban workers in the few existing modern industries are a minority •Who made up the bulk of the population? •Peasants! Lenin and Trotsky •Russia (and China!) – urban workers in the few existing modern industries are a minority •Who made up the bulk of the population? •Peasants – who are conservative and will never rise up Lenin and Trotsky •Socialism cannot come via a popular revolt • > workers must become organized and carry out a coup d‘etat • Lenin and Trotsky •Socialism cannot come via a popular revolt • > workers must become organized and carry out a coup d‘etat • •If this happens on the world periphery, it will destroy all of capitalism, because the rich nations are dependent on exploiting poor countries • Lenin and Trotsky •Communist party – extremely important – it will unify the workers and carry out the coup •„Leninism“, „party vanguardism“ Lenin and Trotsky •Communist party – extremely important – it will unify the workers and carry out the coup •„Leninism“, „party vanguardism“ •The party must be disciplined and centrally led = „democratic centralism“ Lenin and Trotsky •Communist party – extremely important – it will unify the workers and carry out the coup •„Leninism“, „party vanguardism“ •The party must be disciplined and centrally led = „democratic centralism“ •= decision inside the party are made democratically, but once they are made, they are binding • Lenin and Trotsky •„Party-state“ •Upon assuming power, the Party becomes superior to official constitutional structures, which have no real power Lenin and Trotsky •„Party-state“ •Upon assuming power, the Party becomes superior to official constitutional structures, which have no real power •USSR – theoretically a loose federation, held together by the Party > dissolved when Communism ended Lenin and Trotsky •„Party-state“ •Upon assuming power, the Party becomes superior to official constitutional structures, which have no real power •USSR – theoretically a loose federation, held together by the Party > dissolved when Communism ended •Most officials simultaneously hold both governmental and Party positions > the leadership can give them orders through Party mechanism • Lenin and Trotsky •Marx – the Party is cool, but the revolution will be driven by structural forces • •Lenin – the Party is a crucial historical instrument that will drive peripheral societies towards modernity Lenin and Trotsky •„Dictatorship of the proletariat“ • Obsah obrázku text, vektorová grafika Popis byl vytvořen automaticky Lenin and Trotsky •„Dictatorship of the proletariat“ •– Marx though that almost everyone will be a worker at this stage, so the revolution will simply mean majority rule Lenin and Trotsky •„Dictatorship of the proletariat“ •– Marx though that almost everyone will be a worker at this stage, so the revolution will simply mean majority rule •x Lenin: one-party rule •„nothing other than power which is totally unlimited by any laws, totally unrestrained by absolutely any rules, and based directly on force.” • Democratic centralism in China Democratic centralism in China Democratic centralism in China •Theory – lower levels of the Party („the people“) elect the upper echelons = inter-party democracy, meritocracy •The thus chosen leadership then makes a decision, which is meticulously implemented by millions of loyal members Democratic centralism in China Democratic centralism in China •Reality – almost the exact opposite! Democratic centralism in China •Reality – almost the exact opposite! •Real power lies at the level of Politburo / Standing Committee / General Secretary •Influence shifts based on personal patronage networks, informal friendships etc Democratic centralism in China Democratic centralism in China •Reality – almost the exact opposite! •Real power lies at the level of Politburo / Standing Committee / General Secretary •Influence shifts based on personal patronage networks, informal friendships etc •These bodies themselves chose who is going to sit on them and replace retiring members > lower level is told whom they should elect Democratic centralism in China •But local and provincial party leaders are often powerful and can sometimes succesfully resist the centre + make policy decisions •Back to the origins of Communism J Central planning •Then the Party must stay in power and oversee the industrialization = the state will do what capitalists did in the West Central planning •Then the Party must stay in power and oversee the industrialization = the state will do what capitalists did in the West •> central planning Central planning •„Where is the capital necessary for investment going to come from?“ Central planning •„Where is the capital necessary for investment going to come from?“ •Wealth must be extracted from peasants and invested into developing modern industry Central planning •„Where is the capital necessary for investment going to come from?“ •Wealth must be extracted from peasants and invested into developing modern industry • •> regulated prices – artificially low prices for agricultural products, high prices for agricultural equipment •Outright confiscation of harvests Obsah obrázku exteriér, tráva, kůň, tažení Popis byl vytvořen automaticky Central planning •„Where is the capital necessary for investment going to come from?“ •Wealth must be extracted from peasants and invested into developing modern industry • •> regulated prices – artificially low prices for agricultural products, high prices for agricultural equipment •Outright confiscation of harvests •> black market, peasant uprisings > harsh punishments Obsah obrázku text, exteriér, továrna, osoba Popis byl vytvořen automaticky •„Foreign tourists in Russia stand in silent amazement before the gigantic enterprises created there, as they stand before the pyramids, for example. Only seldom does the thought occur to them what enslavement, what lowering of human self-esteem was connected with the construction of those gigantic establishments.“ •- Karl Kautsky How central planning works •Imagine all of society like a single corporation, or a military •> giant rationing system controlled from the centre How central planning works •Imagine all of society like a single corporation, or a military •> giant rationing system controlled from the centre •No markets - state-owned companies are supplied with resources and given orders on what to do with them How central planning works •Imagine all of society like a single corporation, or a military •> giant rationing system controlled from the centre •No markets - state-owned companies are supplied with resources and given orders on what to do with them •Prices – artificially, bureaucratically imposed How central planning works •Ideal plan – get rid of money altogether and function only via rationing •Banks – unnecessary – everyone will be given what they need, loans are not needed How central planning works •Ideal plan – get rid of money altogether and function only via rationing •Banks – unnecessary – everyone will be given what they need, loans are not needed • •Attempted by Lenin during War Communism (1917-1921), later given up How central planning works •What about international trade? How central planning works •What about international trade? •Problem – world market prices vs. domestic artificial prices •> free trade would destroy the system! How central planning works •What about international trade? •Problem – world market prices vs. domestic artificial prices •> free trade would destroy the system! • •Solution – foreign trade companies – monopoly power to trade with the rest of the world How central planning works •What about international trade? •Problem – world market prices vs. domestic artificial prices •> free trade would destroy the system! • •Solution – foreign trade companies – monopoly power to trade with the rest of the world •Import and export – part of the central plan! How central planning works •What about international trade? •Problem – world market prices vs. domestic artificial prices •> free trade would destroy the system! • •Solution – foreign trade companies – monopoly power to trade with the rest of the world •Import and export – part of the central plan! •Problem – constant lack of foreign exchange Central planning •A believe that central planning will outcome capitalism Central planning •A believe that central planning will outcome capitalism •Capitalists behave in a way that is individually rational but collectively irrational • • Central planning •A believe that central planning will outcome capitalism •Capitalists behave in a way that is individually rational but collectively irrational •= they spend money on advertising their product and making it more attractive than the competition •= „race to the bottom“ situations Central planning •A believe that central planning will outcome capitalism •Capitalists behave in a way that is individually rational but collectively irrational •= they spend money on advertising their product and making it more attractive than the competition •= „race to the bottom“ situations •In a communist society, all these resources would be invested more productively J Central planning •NEP Central planning •Russian Civil War (1917-1921) > War Communism •= Attempt to stamp out money and all private transactions • • Central planning •Russian Civil War (1917-1921) > War Communism •= Attempt to stamp out money and all private transactions •Allowed Bolsheviks to mobilize resources and defeat Whites, but unpopular > peasant uprisings • • Central planning •Russian Civil War (1917-1921) > War Communism •= Attempt to stamp out money and all private transactions •Allowed Bolsheviks to mobilize resources and defeat Whites, but unpopular > peasant uprisings •> New Economic Policy (NEP, 1923-1928) = market-oriented reform > small business allowed! • • Central planning •Russian Civil War (1917-1921) > War Communism •= Attempt to stamp out money and all private transactions •Allowed Bolsheviks to mobilize resources and defeat Whites, but unpopular > peasant uprisings •> New Economic Policy (NEP, 1923-1928) = market-oriented reform > small business allowed! •1928 – Stalin – end of NEP, start of Five Year plans •= blueprint for China and other communist countries • • Central planning •NEP proved that it‘s possible for a Communist party to stay in power in a market economy and even to turn back the reforms if it wishes to Central planning •NEP proved that it‘s possible for a Communist party to stay in power in a market economy and even to turn back the reforms if it wishes to (…) Central planning •NEP proved that it‘s possible for a Communist party to stay in power in a market economy and even to turn back the reforms if it wishes to (…) •x „Fukuyamist neoliberalism“ Pros and cons of central planning • Pros and cons of central planning •Difficulty of finding out what‘s valuable in absence of prices Pros and cons of central planning •Difficulty of finding out what‘s valuable in absence of prices •> focus on tangible targets – fertilizer, steel, concrete •> neglect of things which are harder to measure (services etc.) Pros and cons of central planning •Difficulty of finding out what‘s valuable in absence of prices •> focus on tangible targets – fertilizer, steel, concrete •> neglect of things which are harder to measure (services etc.) •Bad management of resources > environmental damage! Pros and cons of central planning •Difficulty of finding out what‘s valuable in absence of prices •> focus on tangible targets – fertilizer, steel, concrete •> neglect of things which are harder to measure (services etc.) •Bad management of resources > environmental damage! •No competition and no bankruptcies > no pressure to make products and services attractive to buyers > low quality + little choice • Pros and cons of central planning •Good at adopting existing techniques and replicating them throughout the economy > catching up • Pros and cons of central planning •Good at adopting existing techniques and replicating them throughout the economy > catching up •Bad at independent innovation • Pros and cons of central planning •Good at adopting existing techniques and replicating them throughout the economy > catching up •Bad at independent innovation • •> as communist countries neared the technological frontier, growth stalled •> problem for all state-dominated economies (China…?) China •WWI – shattering of the Western-dominated capitalist world order •Worldwide loss of faith in the old system + Russian revolution = people embrace new ideologies • • • China •WWI – shattering of the Western-dominated capitalist world order •Worldwide loss of faith in the old system + Russian revolution = people embrace new ideologies • •May Fourth Movement - loss of faith in traditional elites (landowners and scholars), modern nationalism, populism, radical politics, new culture – literature in simple Chinese • • • May Fourth Movement •Desire to fulfill the promise of the Republic •> injection of new energy and momentum into the KMT May Fourth Movement •Desire to fulfill the promise of the Republic •> injection of new energy and momentum into the KMT • •Intellectual habitat in which the CCP was founded The Chinese Communist Party •1921 •Initially – a smaller sibling of the Kuomintang The Chinese Communist Party •1921 •Initially – a smaller sibling of the Kuomintang •Theory of two revolutions •„1911 was the first revolution, the Kuomintang is the party of the Chinese bourgeoisie“ The Chinese Communist Party •1921 •Initially – a smaller sibling of the Kuomintang •Theory of two revolutions •„1911 was the first revolution, the Kuomintang is the party of the Chinese bourgeoisie“ •„We must help the Kuomintang to develop capitalism first“ The Chinese Communist Party •1921 •Initially – a smaller sibling of the Kuomintang •Theory of two revolutions •„1911 was the first revolution, the Kuomintang is the party of the Chinese bourgeoisie“ •„We must help the Kuomintang to develop capitalism first“ •= Soviet advice + opinion of Chinese orthodox Marxists Maoism •Mao Zedong (*1893) – unorthodox theory Obsah obrázku text Popis byl vytvořen automaticky Maoism •Mao Zedong (*1893) – unorthodox theory •> the Party should organize peasants instead of urban workers Maoism •Mao Zedong (*1893) – unorthodox theory •> the Party should organize peasants instead of urban workers •> a prolonged rural guerilla war against landlords and the KMT Maoism •Mao Zedong (*1893) – unorthodox theory •> the Party should organize peasants instead of urban workers •> a prolonged rural guerilla war against landlords and the KMT •= „Maoism“ Maoism •Mao Zedong (*1893) – unorthodox theory •> the Party should organize peasants instead of urban workers •> a prolonged rural guerilla war against landlords and the KMT •= „Maoism“ •At first seen as a fringe position •Marx – short mass revolution by workers – who are the majority •Lenin – short armed insurrection by workers, who are a minority •Mao – long armed insurrection by peasants, who are the majority The Chinese Communist Party •CCP – compliant at first, the KMT turned against them after the Northern Expedition (1927) The Chinese Communist Party •CCP – compliant at first, the KMT turned against them after the Northern Expedition (1927) > white terror against Communists • The Chinese Communist Party •CCP – compliant at first, the KMT turned against them after the Northern Expedition (1927) > white terror against Communists •> Mao‘s position vindicated The Chinese Communist Party •CCP – compliant at first, the KMT turned against them after the Northern Expedition (1927) > white terror against Communists •> Mao‘s position vindicated •> a rural guerilla is actually necessary – cities (with workers) are controlled by the KMT • The Chinese Communist Party •Long March (1934-1935) > to the north of China where the KMT was less powerful Obsah obrázku mapa Popis byl vytvořen automaticky The Chinese Communist Party •Long March (1934-1935) > to the north of China where the KMT was less powerful •Most leaders of the CCP died during the KMT crackdown, or during the march •> Mao emerged as the undisputed leader WWII •Communists patiently built their movement, avoided major battles with the Japanese WWII •Communists patiently built their movement, avoided major battles with the Japanese •„Long struggle“ – „It is necessary to preserve our strength for the final showdown against the Nationalists“ •> this will be the fight that really matters WWII •Seat of the party – Yan‘an – far away from any danger Obsah obrázku mapa Popis byl vytvořen automaticky WWII •Seat of the party – Yan‘an – far away from any danger •„Yan'an Rectification Movement“ – 1942-45 – Mao‘s cult of personality, suppression of dissent within the party, Maoism as the official ideology Obsah obrázku osoba, interiér, lidé, skupina Popis byl vytvořen automaticky WWII •Seat of the party – Yan‘an – far away from any danger •„Yan'an Rectification Movement“ – 1942-45 – Mao‘s cult of personality, suppression of dissent within the party, Maoism as the official ideology •= blueprint for future purges • WWII •„thought reform“, „though realignment“ • WWII •„thought reform“, „though realignment“ •= confession of one‘s mistakes during combative sessions > opponents driven to suicide • Communist victory •1946-1949 – Civil war – communist victory over the exhausted, overextended and corrupt KMT in 1949 • Obsah obrázku text, skupina, dav Popis byl vytvořen automaticky Obsah obrázku text, exteriér, lidé, černá Popis byl vytvořen automaticky Obsah obrázku exteriér, lidé, svatyně, čára Popis byl vytvořen automaticky Communist victory •Communist promises •1) Carry out a land reform Communist victory •Inequality of land ownership – the main problem in all of East Asia • Communist victory •Inequality of land ownership – the main problem in all of East Asia •Brutal exploitation of peasants > poverty and resentment •KMT – allied itself with the landlords • Obsah obrázku mapa Popis byl vytvořen automaticky •Korea, Japan, Taiwan – land reforms „from above“ – carried out by the conservative regimes to avoid revolution – US pressure! •Korea, Japan, Taiwan – land reforms „from above“ – carried out by the conservative regimes to avoid revolution – US pressure! •> „blank slate“ > start of a successful capitalist development! Communist victory •Communist promises •1) Carry out a land reform Communist victory •Communist promises •1) Carry out a land reform •2) Entrepreneurship is going to remain allowed Communist victory •Communist promises •1) Carry out a land reform •2) Entrepreneurship is going to remain allowed •3) Create democracy and pluralism! – CCP will lead a broad coalition of progressive parties and movements • • Communist victory •Communist promises •1) Carry out a land reform •2) Entrepreneurship is going to remain allowed •3) Create democracy and pluralism! – CCP will lead a broad coation of progressive parties and movements • •CCP will thus finish what was started in 1911, Mao is the true heir of Sun Yat Sen! • Obsah obrázku osoba, patro, mladý, sport Popis byl vytvořen automaticky •Compare this with: communists in Czechoslovakia • •Compare this with: communists in Czechoslovakia •- land reform ✔️ • •Compare this with: communists in Czechoslovakia •- land reform ✔️ •- socialism different from the Soviet model – gradual path, no threat for small businesses ✔️ • •Compare this with: communists in Czechoslovakia •- land reform ✔️ •- socialism different from the Soviet model – gradual path, no threat for small businesses ✔️ •- democracy – „National Front“ coalition ✔️ •Compare this with: communists in Czechoslovakia •- land reform ✔️ •- socialism different from the Soviet model – gradual path, no threat for small businesses ✔️ •- democracy – „National Front“ coalition ✔️ •= fulfillment of the dream of the republic from 1918! ✔️ • First years of the PRC - 1949-1953 •Massacre of landlords > circa 2 million victims First years of the PRC - 1949-1953 •Not full central planning yet! • First years of the PRC - 1949-1953 •Not full central planning yet! •Industry – slow nationalization of companies •Agriculture – independent farmers – pressure to form cooperatives – not collective ownership • First years of the PRC - 1949-1953 •Not full central planning yet! •Industry – slow nationalization of companies •Agriculture – independent farmers – pressure to form cooperatives – not collective ownership • •Recovery from all the wars, participation in Korea > the CCP was not strong enough to control all of the economy • First Five Year Plan (1953-1957) • First Five Year Plan (1953-1957) •Soviet model, Soviet equipment, Soviet advisors First Five Year Plan (1953-1957) •Soviet model, Soviet equipment, Soviet advisors • Obsah obrázku text Popis byl vytvořen automaticky First Five Year Plan (1953-1957) •Soviet model, Soviet equipment, Soviet advisors •Centralized, hierarchical, technocratic First Five Year Plan (1953-1957) •Soviet model, Soviet equipment, Soviet advisors •Centralized, hierarchical, technocratic •Main point – develop modern industry at the expense of agriculture First Five Year Plan (1953-1957) •Soviet model, Soviet equipment, Soviet advisors •Centralized, hierarchical, technocratic •Main point – develop modern industry at the expense of agriculture •Full nationalization of industry, collective farming Obsah obrázku strom, exteriér, bílá, černá Popis byl vytvořen automaticky Obsah obrázku text, tráva, exteriér, obloha Popis byl vytvořen automaticky Obsah obrázku text Popis byl vytvořen automaticky First Five Year Plan (1953-1957) •Progress in industry, but stagnation in agriculture • • First Five Year Plan (1953-1957) •Progress in industry, but stagnation in agriculture •Mao – that‘s not good enough! • • • First Five Year Plan (1953-1957) •Progress in industry, but stagnation in agriculture •Mao – that‘s not good enough! •1957 – turn in a more radical direction • • First Five Year Plan (1953-1957) •Progress in industry, but stagnation in agriculture •Mao – that‘s not good enough! •1957 – turn in a more radical direction • •Hundred Flowers Campaign – „you can criticize us without fear“ • • • First Five Year Plan (1953-1957) •Progress in industry, but stagnation in agriculture •Mao – that‘s not good enough! •1957 – turn in a more radical direction • •Hundred Flowers Campaign – „you can criticize us without fear“ •Anti-Rightist Campaign – another purge; full one-party state; led by Deng Xiaoping! • • • „Great Leap Forward“ (1958-1962) •Basic idea – simultaneous progress in cities and the countryside • „Great Leap Forward“ (1958-1962) •Basic idea – simultaneous progress in cities and the countryside •Local patriotic and ideological enthusiasm will replace Soviet-style centralized technocracy • „Great Leap Forward“ (1958-1962) •Basic idea – simultaneous progress in cities and the countryside •Local patriotic and ideological enthusiasm will replace Soviet-style centralized technocracy •Local party leaders should heroically struggle to achieve great results • „Great Leap Forward“ (1958-1962) •Basic idea – simultaneous progress in cities and the countryside •Local patriotic and ideological enthusiasm will replace Soviet-style centralized technocracy •Local party leaders should heroically struggle to achieve great results •Abolition of private land ownership, farms to be fused into large scale „village communes“ • „Great Leap Forward“ (1958-1962) •Basic idea – simultaneous progress in cities and the countryside •Local patriotic and ideological enthusiasm will replace Soviet-style centralized technocracy •Local party leaders should heroically struggle to achieve great results •Abolition of private land ownership, farms to be fused into large scale „village communes“ •Small industrialization carried out by these village communes • • „Great Leap Forward“ (1958-1962) •Communes were supposed to produce their own steel Obsah obrázku osoba, exteriér, lidé, dav Popis byl vytvořen automaticky Obsah obrázku exteriér, strom, staré, země Popis byl vytvořen automaticky Obsah obrázku země, exteriér, staré, lidé Popis byl vytvořen automaticky „Great Leap Forward“ (1958-1962) •Communes were supposed to produce their own steel •„They probably have a lot of spare workers who aren‘t doing anything valuable, let‘s force them to work in manufacturing“ „Great Leap Forward“ (1958-1962) •Communes were supposed to produce their own steel •„They probably have a lot of spare workers who aren‘t doing anything valuable, let‘s force them to work in manufacturing“ •People fulfilled their quotas by melting down tools and reforging them into useless, low-quality iron „Great Leap Forward“ (1958-1962) •Unrealistic production quotas > all the food was forcibly confiscated „Great Leap Forward“ (1958-1962) •Unrealistic production quotas > all the food was forcibly confiscated •Biggest famine in China‘s history – 30 million deaths „Great Leap Forward“ (1958-1962) •The program had to be called off in 1962 „Agriculture first“ (1962-1966) •Intermezzo - more pragmatic policies aimed at repairing the damage „Agriculture first“ (1962-1966) •Intermezzo - more pragmatic policies aimed at repairing the damage •Less ideology, more management •Material rewards „Agriculture first“ (1962-1966) •> alleviate the hunger and poverty of rural villages > higher prices for agricultural products „Agriculture first“ (1962-1966) •> alleviate the hunger and poverty of rural villages > higher prices for agricultural products •Industrial firms – mostly remained under local control, but run in a more professional manner „Agriculture first“ (1962-1966) •> alleviate the hunger and poverty of rural villages > higher prices for agricultural products •Industrial firms – mostly remained under local control, but run in a more professional manner •Basic economic model until 1978 „Agriculture first“ (1962-1966) •Except for the first Five Year plan, China never had true Soviet-style central planning „Agriculture first“ (1962-1966) •Except for the first Five Year plan, China never had true Soviet-style central planning •Decision making was divided between different levers of party and government „Agriculture first“ (1962-1966) •Except for the first Five Year plan, China never had true Soviet-style central planning •Decision making was divided between different levers of party and government •Typically, many enterprises were controlled on the provincial level etc. „Agriculture first“ (1962-1966) •Except for the first Five Year plan, China never had true Soviet-style central planning •Decision making was divided between different levers of party and government •Typically, many enterprises were controlled on the provincial level etc. • •> opaque system, it is difficult to say who is in charge of what Cultural Revolution (1966-1976) •Mao was partially discredited by the Great Leap Forward and faced opposition inside the party (Deng Xiaoping) Cultural Revolution (1966-1976) •Mao was partially discredited by the Great Leap Forward and faced opposition inside the party (Deng Xiaoping) •Attempt to turn Mao into a mere figurehead and create a more technocratic and collective leadership Cultural Revolution (1966-1976) •Mao was partially discredited by the Great Leap Forward and faced opposition inside the party (Deng Xiaoping) •Attempt to turn Mao into a mere figurehead and create a more technocratic and collective leadership •Abroad – deconstruction of Stalin‘s cult of personality, more „boring“ and less bloody rule in the USSR Cultural Revolution (1966-1976) •Cultural Revolution – attack on intellectuals and party bureaucrats Cultural Revolution (1966-1976) •Cultural Revolution – attack on intellectuals and party bureaucrats – Mao‘s opponents Cultural Revolution (1966-1976) •Cultural Revolution – attack on intellectuals and party bureaucrats – Mao‘s opponents •Officially: attempt to prevent the Communist party from becoming a new elite – permanent revolution Cultural Revolution (1966-1976) •Red Brigades – groups of fanatical young comrades Obsah obrázku text Popis byl vytvořen automaticky Obsah obrázku text, pózování, osoba, skupina Popis byl vytvořen automaticky Obsah obrázku osoba, exteriér, skupina, pózování Popis byl vytvořen automaticky Cultural Revolution (1966-1976) •Red Brigades – groups of fanatical young comrades > attacks on „bourgeois elements“ etc., taking over of factories Cultural Revolution (1966-1976) •Red Brigades – groups of fanatical young comrades > attacks on „bourgeois elements“ etc., taking over of factories •Destruction of Chinese cultural heritage („old thinking“) Obsah obrázku exteriér, jeskyně Popis byl vytvořen automaticky Cultural Revolution (1966-1976) •Red Brigades – groups of fanatical young comrades > attacks on „bourgeois elements“ etc., taking over of factories •Destruction of Chinese cultural heritage („old thinking“) •„Sending down“ – young intellectuals sent to work in villages > waste of talent and potential • Cultural Revolution (1966-1976) •Red Brigades – groups of fanatical young comrades > attacks on „bourgeois elements“ etc., taking over of factories •Destruction of Chinese cultural heritage („old thinking“) •„Sending down“ – young intellectuals sent to work in villages > waste of talent and potential •„Self-criticism“ – public humiliation and torture Obsah obrázku text, osoba, dav Popis byl vytvořen automaticky Obsah obrázku text, osoba, exteriér, lidé Popis byl vytvořen automaticky Cultural Revolution (1966-1976) •1968 – the army had to move in to rein in the Red Brigades • Cultural Revolution (1966-1976) •Officially no major change to the economic model – but omnipresent chaos and radicalism Cultural Revolution (1966-1976) •Officially no major change to the economic model – but omnipresent chaos and radicalism •Mao‘s final years (1970-76) – the situation slowly calmed down • •“Had Mao died in 1956, his achievements would have been immortal. Had he died in 1966, he would still have been a great man but flawed. But he died in 1976. Alas, what can one say?” Mao‘s final years •Power struggle between pragmatists (Deng and Zhou Enlai) and hardcore Maoists (Gang of Four – Mao‘s wife) Mao‘s final years •Power struggle between pragmatists (Deng and Zhou Enlai) and hardcore Maoists (Gang of Four – Mao‘s wife) •Material incentives and focus on economic performance vs. ideological purity and revolutionary zeal Mao‘s final years •Power struggle between pragmatists (Deng and Zhou Enlai) and hardcore Maoists (Gang of Four – Mao‘s wife) •Material incentives and focus on economic performance vs. ideological purity and revolutionary zeal •Both Mao and Zhou died in 1976 Mao‘s final years •Power struggle between pragmatists (Deng and Zhou Enlai) and hardcore Maoists (Gang of Four – Mao‘s wife) •Material incentives and focus on economic performance vs. ideological purity and revolutionary zeal •Both Mao and Zhou died in 1976 •Brief interregnum, Deng‘s faction emerged victorious in 1978 Mao‘s final years •Power struggle between pragmatists (Deng and Zhou Enlai) and hardcore Maoists (Gang of Four – Mao‘s wife) •Material incentives and focus on economic performance vs. ideological purity and revolutionary zeal •Both Mao and Zhou died in 1976 •Brief interregnum, Deng‘s faction emerged victorious in 1978 •„Gang of Four“ – blamed for the excesses of the Cultural Revolution so that Mao himself could be absolved of all responsibility • Results of Maoism •Success in decreasing extreme poverty, illiteracy, child mortality Results of Maoism •Success in decreasing extreme poverty, illiteracy, child mortality •Growth from a very low starting point + ability to mobilize and direct resources > some basic industrialization Results of Maoism •Success in decreasing extreme poverty, illiteracy, child mortality •Growth from a very low starting point + ability to mobilize and direct resources > some basic industrialization •Great power status abroad Results of Maoism •Success in decreasing extreme poverty, illiteracy, child mortality •Growth from a very low starting point + ability to mobilize and direct resources > some basic industrialization •Great power status abroad •But, obviously, also famine and death, trauma, destruction of institutions… •Next time – economic reforms after 1978